Download Full Year 2015 Results

Press Release
11 February 2016
Informa PLC
Results for 12 Months to 31 December 2015
2015 – A Year of Progress and Performance
KEY FINANCIAL HIGHLIGHTS







Accelerating Revenue Growth: +6.6% to £1,212.2m (2014: £1,137.0m), +1.0% organic
Strong Adjusted Operating Profit growth: +9.5% to £365.6m (2014: £334.0m)
Higher Statutory Profit before Tax: £219.7m (2014: Statutory loss of £31.2m)
Growth in Adjusted Earnings per Share: +4.6% to 42.9p (2014: 41.0p*)
Increased Dividend: up 4.1% to 20.1p (2014: 19.3p)
Improving Free Cash Flow: +30% to £301.1m (2014: £232.5m)
Robust Balance Sheet: Net debt/EBITDA 2.2 times (2014: 2.2 times)
London: Informa (LSE: INF.L), the International Business Intelligence, Exhibitions, Events and
Academic Publishing Group, today reported results for the 12 months to 31 December 2015, a
period in which it delivered improved Revenue, Profits, Earnings and Free Cash Flow. This financial
performance was combined with continued progress in the implementation of the 2014-2017 Growth
Acceleration Plan (“GAP”), designed to enhance capabilities and stimulate growth across the Group:


Progress - significant operational and financial momentum through GAP:
o Portfolio Management: Increased focus at Business Intelligence and Knowledge &
Networking through selective disposals, latterly our Russian conference business;
o Investment: More than 20 GAP organic initiatives launched, with over £25m deployed;
margin impact offset by trading momentum and strong acquisition returns;
o Operating Structure: Improved performance in Business Intelligence and
operational progress in Knowledge & Networking following introduction of new
operating model; simplified structure also launched in Academic Publishing;
o Acquisition Strategy: Returns enhanced by targeted US expansion and strengthened
capability in execution and integration; North America now 42% of Group revenue;
o Funding: Improved operating performance, combined with discipline on working
capital and cash management leads to increase in minimum Dividend growth
commitment from 2% to 4% in 2016 and 2017, the last two years of GAP.
Performance – improving trading trends in all four Operating Divisions:
o Global Exhibitions: Double-digit revenue growth following robust underlying
performance and improved returns from US expansion;
o Academic Publishing: Consistent revenue growth reflecting focus on Upper Level
Academic Market and continued investment in content and technology;
o Business Intelligence: Return to positive organic revenue growth in the fourth quarter
amid greater focus on subscription renewals and key customer management;
o Knowledge & Networking: Streamlined operating structure, improved capabilities
and increased focus drives improving trend through year-end.
Stephen A. Carter, Group Chief Executive, said: “Informa made significant progress in 2015. We
have delivered growth in Revenues, Earnings, Free Cash Flow and Dividends, whilst investing for
future capability and further growth. Our results reflect the benefits of the Growth Acceleration Plan,
our cost discipline and the effective integration and operation of recently acquired businesses.”
He added: “Our ambitions for 2016, Year Three of the Growth Acceleration Plan, are to remain
highly disciplined in the continued delivery of that programme, while continuing to expand the
scale and quality of our businesses in North America and in the wider Exhibitions market. We
anticipate a further period of earnings and cash flow growth in 2016, including a full year of
positive organic revenue growth in Business Intelligence.”
He concluded: “For Informa, 2015 was a year of both Progress and Performance. Our ambition for
2016 is for it to be a year of Disciplined Delivery”
*2014 Adjusted EPS has been restated to reflect the change in tax treatment of goodwill amortisation
www.informa.com
1
Financial Highlights
2014
£m
Actual
%
Organic1
%
Revenue
Operating profit / (loss)
2015
£m
1,212.2
236.5
1,137.0
(2.8)
6.6
1.0
Adjusted operating profit2
Adjusted operating margin (%)2
365.6
30.2
334.0
29.4
9.5
0.1
Operating cash flow3
Profit / (loss) before tax
377.7
219.7
323.8
(31.2)
Adjusted profit before tax2
Profit / (loss) for the year
Diluted earnings / (loss) per share (p)
339.7
172.7
26.4
309.6
(51.0)
(8.6)
9.7
Adjusted diluted earnings per share (p)2
Dividend per share (p)
Free cash flow3
42.9
20.1
301.1
41.0
19.3
232.5
4.6
Net debt4
895.3
876.2
1In
this document 'organic' refers to results adjusted for material acquisitions and disposals and the effects of changes in foreign currency
rates.
2In this document we refer to adjusted and statutory results. Adjusted results are prepared to provide a useful alternative measure to explain
the Group’s underlying business performance. Adjusted results exclude adjusting items as set out in the Income Statement.
3Operating cash flow, free cash flow and net debt are as calculated in the Financial Review.
Divisional Highlights
Academic Publishing
Revenue
Adjusted Operating Profit
Adjusted Operating Margin (%)
Business Intelligence
Revenue
Adjusted Operating Profit
Adjusted Operating Margin (%)
Global Exhibitions
Revenue
Adjusted Operating Profit
Adjusted Operating Margin (%)
Knowledge & Networking
Revenue
Adjusted Operating Profit
Adjusted Operating Margin (%)
2015
£m
2014
£m
Actual
%
Organic1
%
447.4
164.8
36.8
408.9
150.0
36.7
9.4
9.9
1.6
2.2
276.8
63.2
22.8
281.7
75.2
26.7
(1.7)
(16.0)
(1.9)
(15.6)
262.5
98.0
37.3
200.2
67.3
33.6
31.1
45.6
10.5
11.1
225.5
39.6
17.6
246.2
41.5
16.9
(8.4)
(4.6)
(4.2)
3.7
ENQUIRIES
Informa PLC
Stephen A. Carter, Group Chief Executive
Gareth Wright, Group Finance Director
Richard Menzies-Gow, Director of Investor Relations
Teneo Strategy
Tim Burt / Zoë Watt / Ben Ullmann
+44 (0) 20 7017 5771
+44 (0) 20 7017 7096
+44 (0) 20 3377 3445
+44 (0) 20 7240 2486
ANALYSTS AND INVESTORS
There will be a presentation to analysts at 9.30am on 11 February 2016 at Bank of America Merrill Lynch Financial
Centre, 2 King Edward Street, London, EC1A 1HQ. A simultaneous webcast of the analysts’ presentation will be
available via the Company's website (www.informa.com).
www.informa.com
2
Trading Outlook
The macro and geo-political environment continues to be uncertain and varied by region. We have not assumed
any marked improvement for 2016. However, the combination of our portfolio strategy, the high proportion of
recurring and predictable revenues, and our growing international presence across a range of verticals provides
us with some resilience and an ability to manage through periods of volatility in individual markets.
2016 – A Year of Disciplined Delivery of GAP
A key priority for 2016 will be the continued effective implementation and Disciplined Delivery of the Growth
Acceleration Plan as it enters its third year. We expect to invest around £50m as we build on the initiatives
launched in 2014 and 2015. Benefits from these projects will begin to be realised by year-end although, as
expected, the combination of operating and capital expenditure will have some margin impact in 2016.
Notwithstanding this impact, the capabilities we are now building into the Group and our forward visibility give us
confidence that in Year Three of GAP, we can further improve Organic Revenue growth, as well as deliver
another year of growth in adjusted Operating Profit and Earnings.
ACADEMIC PUBLISHING
In the short to medium-term, the Academic market continues to feel relatively resilient, albeit budgets still vary by
region and sector with some ongoing softness in US Medical Books and the wider textbook market. Over the
long-term, the wider Educational/Academic market is likely to see more significant changes as customer demands
for digital innovation and increased flexibility grow.
In order to meet these changing customer needs we are investing, through GAP, in strengthening our digital
capabilities while continuing to build the depth and breadth of our content portfolio. Our business is predominantly
focused on the Upper Level market, where customers have made a conscious decision to specialise in a
particular subject area. This differentiates us from peers and positions us well within the context of market trends.
In 2016, we are also taking steps to further simplify our operating structure by consolidating operations into a
single global Journals business and a single global Books business. This will drive efficiencies and strengthen
operational capabilities, increasing our customer and author focus. It helps underpin expectations for 2016, when
we are targeting organic growth at least at the 2015 level, in-line with or ahead of the wider Academic market.
BUSINESS INTELLIGENCE
The market for specialist business information that helps customers make faster and better decisions remains
attractive and growing. We are more convinced than ever that we have the Brands and core datasets to build a
strengthened position in this market over time.
The restructuring programme launched in 2014 has had a positive impact, delivering good operational momentum
following the implementation of a simplified operating model and reorganisation around five core verticals,
combined with increased focus on subscription renewals and key customer management. The leadership team
has delivered a disciplined performance, which we expect to lead to further improvements in 2016, as we invest in
key areas such as Intelligent Product Platforms, Marketing Automation and Customer Insight.
Trends in annualised contract values and customer pipelines improved through 2015. Renewal rates in the key
November to January period were also encouraging. This positions us well for 2016, when we now expect to
deliver positive organic growth across the period, a year earlier than originally forecast.
GLOBAL EXHIBITIONS
The value of face-to-face media continues to rise, underpinning the structural attractions and healthy growth
outlook for the Exhibitions industry, albeit with regional variances. Informa has built its position in this market
purposefully over recent years and is now the third largest commercial operator globally. Our capabilities have
been particularly enhanced by our expansion in the US, which leads the industry on innovation.
Our strategy to internationalise and scale the business has improved the balance of our Exhibitions portfolio and
underpins our market-leading growth profile. In 2016, we will invest further in our digital and data capabilities to
deepen customer engagement and help develop our Market Making capacity within key verticals.
The strength of our major Brands gives us good forward visibility and this points to another year of attractive
organic growth in 2016. We will also continue to target attractive expansion opportunities that strengthen and
extend our position in growth markets, further internationalise the business and enhance our digital offering.
KNOWLEDGE & NETWORKING
The market for Community Content, Connectivity and Data also benefits from the positive trend in face-to-face
media but growth continues to vary significantly by region, with the UK and North America the most robust.
After a year of repositioning through internal restructuring and selective disposals, the Knowledge & Networking
Division enters 2016 with a simplified model, focused on key geographies and major Brands within its three core
verticals of Finance, Life Sciences and Telecoms Media & Technology. The management team has a clear plan
to improve customer engagement and retention through investment in content, connectivity and increased
digitisation across the event life cycle. The target in 2016 is to return the business to at least a flat organic
performance despite its residual exposure to the Energy and Resource vertical, a market we expect to remain
equally challenging in 2016 as it was in 2015.
www.informa.com
3
Operational Review
In 2015, the focus was on driving steady improvement in the Group’s operating performance, while progressing
with the implementation of the 2014-2017 Growth Acceleration Plan, Informa’s multi-year programme to
accelerate growth and improve returns. This has allowed us to meet our financial expectations while building
substantial capability in key functions across the Group, laying the foundations for sustainable future growth.
STRENGTHENED MANAGEMENT CAPABILITY
One of the features of GAP has been the injection of management capability into key areas. Following the
strengthening of the Executive Team in 2014, a number of additional key appointments were made in 2015.
In September, Charlie McCurdy was appointed Chief Executive of the Global Exhibitions Division, bringing to the
Group more than 25 years of international experience in the Exhibitions and wider Business-to-Business Media
Industry. Charlie has since appointed a Chief Technology Officer and a Digital and Data Director for the Division,
both with specific experience in deepening customer engagement through integrating digital and data capability
into Exhibitions businesses.
This follows on from the appointment of Chief Technology Officers in the other Divisions through the year, in
recognition of the importance of technology and digital delivery in driving future growth in all our businesses.
Elsewhere, there were a number of other significant appointments in 2015, both within the Operating Divisions
and in key central Group functions such as Finance, Treasury, Communications, M&A and Risk Management. All
bring valuable knowledge and experience to Informa, increasing the overall quality and depth of talent at the
Group.
ORGANIC INVESTMENT PROGRAMME ON TRACK
A key element of GAP is the commitment to invest up to £90m in a range of organic initiatives across the Group.
This programme was launched in 2014 and 24 projects are now underway across all four Operating Divisions and
centrally within Global Support. The total amount invested through the year was around £25m, with three quarters
of this classed as capital expenditure and the remainder as operating expenditure. This was at the lower-end of
the range estimated at the start of the year, reflecting the time taken to assemble and mobilise GAP teams in
each of the Divisions and start the process of submitting detailed project plans for approval. This is not expected
to have a material impact on the financial profile of GAP, with forecast returns across the programme unaffected.
The initiatives vary in scope and scale but all are focused on accelerating growth by strengthening our capabilities
in key areas such as content production, customer insight and engagement, technology platforms, data
management, marketing and digital delivery. Examples within the Operating Divisions include:




Academic Publishing: Digitising and enriching books content at a chapter level; upgrading product
delivery platforms; Customer Analytics and Insight Platforms; Author Services and Lifecycle
Management
Business Intelligence: Customer Insight and Analytics; Intelligence and Insight platforms; Data and
Content expansion; Brand Proposition and Web Estate
Global Exhibitions: Data capture, management and analytical capabilities; Digital Content and
Marketing Platform
Knowledge & Networking: Digital Sales and Marketing Platform; Master Data Management; In-Event
Engagement and Experience
INCREASED FOCUS THROUGH PORTFOLIO MANAGEMENT
Following the change in operating structure and adoption of a simplified operating model, we have become more
disciplined in our approach to portfolio management, continually reassessing the strategic logic and future
potential returns of individual assets.
In 2015, this led to a number of disposals, the largest of which was within Business Intelligence, through the
sale of its Consumer Information businesses for £25m. While this included some well-known Brands, the massforecasting nature of the products did not fit with the Division’s strategic focus on intelligence products. Moreover,
the sale increased the focus on verticals where it has the greatest opportunity to improve returns and accelerate
growth.
The most active Division in terms of portfolio management through 2015 was Knowledge & Networking. This
reflected the management team’s strategy to refocus the business on key regions and verticals where it has large,
Branded, international events and consolidate its position in smaller territories largely producing local language,
spot conferences. This led to a programme of disposals, comprising two businesses in the Netherlands, one in
Sweden and one in Denmark, which followed the 2015 exits from Johannesburg and Melbourne.
We also took this opportunity to review our German conference business. In this case, we concluded that there
was value to be created within Informa and so we have set about refocusing its portfolio and prioritising resources
more effectively, whilst also consolidating the back office further to drive efficiencies.
We also recently completed an agreement to sell a majority stake in Adam Smith, our Russian conference
business, to a local conference operator. The combination will drive efficiencies and partners us with a connected
local player who can leverage our strong content and brands in what remains a very challenging market.
www.informa.com
4
INTERNATIONALISATION AND SCALE THROUGH TARGETED ACQUISITION STRATEGY
When we launched GAP, we clearly set out our ambition to pursue targeted acquisitions that broaden our
geographic reach, strengthen our position in key verticals and drive scale benefits. We also signalled our desire to
build our presence further in North America, which is by far the largest and most important region in each of the
markets where we operate.
To date we have focused capital allocation in our two strongest Divisions, Academic Publishing and Global
Exhibitions. In 2014, this led to the addition of Virgo and Hanley Wood Exhibitions, giving us a position in the US
market and an experienced local Exhibitions management team for the first time. In 2015, we focused on fully
integrating these businesses, consolidating back office functions into our US shared services centre whilst
ensuring we met our acquisition performance plan. We also started to reap synergies across the businesses,
signing a US wide deal for stand construction and leveraging our Dallas team to take-on operational
responsibilities for FIME, the US Healthcare acquisition we completed in October. In 2015, we also added US
Exhibitions businesses in Orlando (Orlando MegaCon), Las Vegas (Beauty and Aesthetics Expo) and New York
and Los Angeles (Dwell on Design).
As we build further scale in this key market, we believe additional synergies will materialise in areas including
sales, venues and hotel commissions. Our GAP investments are allowing us to invest in developing our digital
and data capabilities, which is becoming increasingly important to exhibitors, led by innovation in the US.
To date, the performance and returns from our US Exhibitions business have been ahead of plan, reflecting the
quality of Brands and our strengthened capability in the execution and integration of acquisitions, supported by a
healthy underlying market. North America now represents more than 28% of revenue within the combined Global
Exhibitions and Knowledge & Networking Divisions, which together generate around £140m of profit. Within
that, Exhibitions represents more than 25% of Group Profit compared with less than 10% five years ago.
In Academic Publishing, we continue to target accretive bolt-on additions to the portfolio, in both the Books and
Journals businesses. Often these are relatively small in scale but the returns can be attractive, as we have a
highly efficient model for integrating content into our portfolio and removing duplicate costs. This will be further
enhanced by our move to a single global Books operation and a single global Journals business.
In 2015, we made two significant acquisitions in Ashgate and Maney, with a combined consideration of around
£45m. The former is one of the leading UK-based Humanities and Social Sciences (“HSS”) book publishers, with
more than 12,500 high quality titles, consolidating our position as the world’s largest English language publisher
of academic content in HSS disciplines. Maney is a journals publisher, with a portfolio of more than 170 titles
across HSS and Science, Technical and Medical (“STM”). It is also highly complementary to our existing portfolio,
adding to our expertise and reputation in subjects such as Philosophy, Theology and Engineering.
In 2015, the post-acquisition focus was to fully integrate both businesses in time for the 2016 renewal season and
this was completed on schedule, allowing us to go to market with an expanded portfolio of titles.
As we improve the operational fitness of our two other Divisions, Business Intelligence and Knowledge &
Networking, and progressively return them to positive organic growth, we are also starting to more actively scan
their respective markets for potential acquisition opportunities. We are seeking businesses that could give us a
capability we don’t have, or that strengthen our position in a key vertical or adjacency and provide tangible scale
benefits. However, we remain disciplined, with any additions having to meet our financial and strategic criteria.
IMPROVING CASH GENERATION AND HIGHER DIVIDEND REFLECTS STRONG FINANCIAL DISCIPLINE
A combination of our improved operating performance and the benefits from a programme to drive efficiency in
working capital and cash management is producing valuable incremental cash benefits, ensuring we can fund the
GAP Investment Programme internally. Changes include the introduction of a more structured approach to cash
management, reducing banking and administration charges. As part of this we relocated and expanded our
Treasury function, moving from the Netherlands back to the UK.
This has led to a strong improvement in Free Cash Flow generation through 2014 and 2015, with cash conversion
now tracking at over 100%. This ensured we had a strong Balance Sheet at year-end, with the ratio of net debt to
EBITDA at 2.2 times. We continue to target standard leverage at between 2.0 to 2.5 times, with a target ceiling of
around 3.0 times for large acquisitions.
In September, in line with our strategy to retain financial flexibility at competitive financing rates, we issued $250m
of US Private Placement Notes, extending average debt-maturity and further strengthening the balance sheet.
Finally, through 2014 and 2015, following the acquisition of Hanley Wood Exhibitions, we have been reviewing
our tax reporting in relation to the treatment of goodwill arising from acquisitions in North America, to bring us in
line with peer group practice. The net effect of this alignment produces a Group effective tax rate for 2015 of
17.7%. This has no impact on the overall cash tax paid by the Group.
The combination of improving operational momentum, continued progress with GAP and strong cash generation
led to a decision to increase Dividends Per Share by 4% in 2015. Given the permanent cash benefits being
realised through our initiatives, we have also increased our minimum commitment going forward. For the
remainder of GAP, through 2016 and 2017, we now commit to minimum annual Dividend growth of 4%, double
the previous 2% floor.
www.informa.com
5
Divisional Trading Review
The Group delivered further improvement in its trading performance during 2015 as we continued to implement
the Growth Acceleration Plan (“GAP”). Reported revenue grew +6.6% to £1,212.2m and adjusted operating profit
was +9.5% at £365.6m.
Organic revenue growth was +1.0% in the year and closer to +1.5% if we adjust for the absence of our
quadrennial and biennial exhibitions which ran successfully in 2014. This growth was supported by our US
expansion within Global Exhibitions, and several acquisitions within Academic Publishing, most notably
Ashgate and Maney.
Currency also had an impact on reported financials, with the strengthening of the US Dollar relative to Sterling
having a positive effect, partially offset by Euro and Real weakness. Overall, there was a £14.3m positive impact
on reported revenue and £5.3m impact on adjusted profit, although this was broadly offset by the launch of our
GAP Investment Programme, with around £25m invested in 2015 through a mixture of operating and capital
expenditure.
The commentary below includes statutory and adjusted measures. We believe adjusted operating profit is a
useful additional measure in monitoring Divisional trading performance.
ACADEMIC PUBLISHING
Revenue
Statutory Operating Profit
Adjusted Operating Profit
Adjusted Operating Margin (%)
2015
£m
447.4
116.3
164.8
36.8
2014
£m
408.9
106.3
150.0
36.7
Actual
%
9.4
9.4
9.9
Organic
%
1.6
2.2
The Academic Publishing Division publishes specialist books and journals. Operating as the Taylor & Francis
Group, it is recognised internationally as one of the world’s leading Upper Level academic publishers through its
five main imprints: Taylor & Francis, Routledge, CRC Press, Garland Science and Cogent OA. It has a portfolio of
more than 110,000 book titles and 2,400 journals available in both print and digital formats, across subject areas
within Humanities and Social Sciences, and Science, Technology and Medicine.
In 2015, Academic Publishing accounted for 37% of Group Revenue and 45% of Adjusted Operating Profit.
The Academic Publishing Division reported another year of consistent growth in both revenue and profit,
underpinned by its focus on the Upper Level academic market and growing portfolio of specialist content. Organic
growth was marginally lower than last year, in line with market trends, reflecting some volatility in book purchasing
behaviour and softness in US Medical Books and the wider textbook market.
We continued to pro-actively invest in deepening our content portfolio and in developing our technology capability
in 2015. Through GAP we launched a range of projects to drive usage and discoverability of our content,
encompassing more effective content tagging and management, improved customer analytics and engagement
tools, author services and alternative pricing models.
We also continued to build our Open Access offering through Cogent OA. We now have over 60 Open Access
titles whilst also offering a hybrid option across more than 95% of our subscription titles. The number of Open
Access articles we published in 2015 more than doubled compared to the previous year.
The transition and integration of the Medical Journals business was completed during the year, in time for the
2016 renewal season. Towards the end of the year we launched a programme to further simplify the operating
structure of the business by consolidating our numerous journal and book operations into a single business for
each discipline. This process will be completed through 2016, improving efficiency and positioning us to better
serve customers as demand for product innovation and more flexibility increase.
BUSINESS INTELLIGENCE
Revenue
Statutory Operating Profit / (loss)
Adjusted Operating Profit
Adjusted Operating Margin (%)
2015
£m
276.8
42.1
63.2
22.8
2014
£m
281.7
(155.2)
75.2
26.7
Actual
%
(1.7)
n/a
(16.0)
Organic
%
(1.9)
(15.6)
The Business Intelligence Division provides specialist data, intelligence and insight to businesses, helping them
make better decisions, gain competitive advantage and enhance return on investment. It has a portfolio of more
than 100 digital subscription products, providing critical intelligence to niche communities within five core industry
verticals: Pharma, Finance, Maritime, TMT, and Agribusiness.
In 2015, Business Intelligence accounted for 23% of Group Revenue and 17% of Adjusted Operating Profit.
www.informa.com
6
The Business Intelligence Division made good operational progress through 2015 culminating in a return to
positive organic growth in the fourth quarter, a year ahead of original expectations. The reorganisation of the
sales operation and renewed focus on subscription renewals and customer management had a positive impact,
delivering a steady improvement in retention rates and sales pipeline through the year. This led to improving
trends in Annualised Contract Values in the majority of the verticals.
We also started to invest, through GAP, in our product capabilities and delivery platforms. Each vertical now has a
detailed product development roadmap and while these initiatives will only start to deliver benefits from the backend of 2016, they are key, in combination with a refocused and reinvigorated sales operation, in driving consistent
levels of organic growth across the business.
In July, we announced the sale of our Consumer Information businesses for £25m, streamlining the Division to
focus on our five key verticals where we have strong Brands and products with proprietary data and intelligence
features more closely aligned to customer decision-making.
GLOBAL EXHIBITIONS
Revenue
Statutory Operating Profit
Adjusted Operating Profit
Adjusted Operating Margin (%)
2015
£m
262.5
67.0
98.0
37.3
2014
£m
200.2
24.1
67.3
33.6
Actual
%
31.1
178.0
45.6
Organic
%
10.5
11.1
The Global Exhibitions Division organises transaction-oriented Exhibitions and trade shows, which provide
buyers and sellers across different industries and communities with a powerful platform to meet face to face, build
relationships and conduct business. Informa has a portfolio of 170 Exhibitions, serving a number of core verticals,
including Health & Nutrition, Beauty, Property & Construction and Pop Culture.
In 2015, Global Exhibitions accounted for 22% of Group Revenues and 27% of Adjusted Operating Profit.
Our strategy to scale and internationalise our Exhibitions business continued at pace in the year, through a
combination of strong underlying growth and further accretive acquisitions. Adjusted operating profit grew by
nearly 50% year-on-year, confirming our position as the challenger operator in the industry.
Our major exhibition brands such as Arab Health, China Beauty and Cityscape Global all continued to perform
strongly, as did recent additions to the portfolio from our US expansion programme, including World of Concrete
and SupplySide West. We now generate over 38% of revenue in North America, the largest Exhibition market
globally.
The appointment of Charlie McCurdy as Chief Executive of the Division in September underlines our ambition to
build a best-in-class Exhibitions business. It further enhances the strong management capability we have
assembled within the business and his experience in building global Brands and leveraging digital data will prove
invaluable as we seek to become a market maker within key verticals.
KNOWLEDGE AND NETWORKING
Revenue
Statutory Operating Profit
Adjusted Operating Profit
Adjusted Operating Margin (%)
2015
£m
225.5
11.1
39.6
17.6
2014
£m
246.2
22.0
41.5
16.9
Actual
%
(8.4)
(49.5)
(4.6)
Organic
%
(4.2)
3.7
The Knowledge & Networking Division is the Group’s Community Content, Connectivity and Data business,
incorporating its training, learning, conference, advisory and congress businesses. It organises content-driven
events and programmes that provide a platform for communities to meet, network and share knowledge. It runs
over 2,000 conferences and training events each year globally, covering a range of subject areas, but with a
particular focus on Life Sciences, TMT and Finance.
In 2015, Knowledge & Networking accounted for 18% of Group Revenue and 11% of Adjusted Operating Profit.
Our strategy to simplify the operating structure and streamline the portfolio within Knowledge & Networking led
to a steady improvement in performance through the year, culminating in a strong fourth quarter. Following the
closure of our offices in Melbourne and Johannesburg in 2014, we sold our conference businesses in Sweden,
Denmark and The Netherlands. More recently, we sold a majority stake in our Russian business. These were
largely focused on small, local language conferences with less potential for consistent growth and lower
profitability, something reflected in the year-on-year improvement in Divisional margins.
Under the new operating structure, the business is focused around its major event Brands within the three core
verticals of Life Sciences, TMT and Finance. Through GAP initiatives launched in 2015, it is developing the quality
of content and customer experience at its events, whilst also investing in developing digital sales and marketing
capabilities, as customers increasingly look to engage online, both during an event and throughout the year.
www.informa.com
7
Financial Review
In 2015, the Group delivered an improved performance in Revenue, Profits, Earnings and Free Cash Flow,
combined with continued progress in the implementation of the 2014-2017 Growth Acceleration Plan.
2015
£m
1,212.2
Revenue
2014
£m
1,137.0
Actual
%
6.6
Statutory operating profit/(loss)
236.5
(2.8)
n/a
Adjusted operating profit
365.6
334.0
9.5
Statutory earnings/(loss) per share
26.4p
(8.6)p
n/a
Adjusted earnings per share
42.9p
41.0p
4.6
Free Cash Flow
301.1
232.5
29.5
Organic
%
1.0
0.1
In addition, the Group starts 2016 in a strong financial position, with the ratio of net debt to EBITDA at 2.2 times at
31 December 2015 (2014: 2.2 times).
INCOME STATEMENT
Adjusted
results
2015
£m
1,212.2
Adjusting
items
2015
£m
-
Statutory
result
2015
£m
1,212.2
Adjusted
results
20142
£m
1,137.0
Adjusting
items
20142
£m
-
Statutory
result
2014
£m
1,137.0
Operating Profit/(loss)1
365.6
(129.1)
236.5
334.0
(336.8)
(2.8)
Profit/(loss) on disposal of
subsidiaries and operations
Net finance costs
Profit/(loss) before tax
(25.9)
339.7
9.1
(120.0)
9.1
(25.9)
219.7
(24.4)
309.6
(2.8)
(1.2)
(340.8)
(2.8)
(25.6)
(31.2)
Tax (charge)/credit
(60.2)
13.2
(47.0)
(58.5)
38.7
(19.8)
Profit/(loss) for the year
279.5
(106.8)
172.7
251.1
(302.1)
(51.0)
Revenue
Revenue growth
Organic revenue growth
Adjusted operating profit
Organic adjusted operating profit
Adjusted operating margin
Adjusted diluted earnings per
share 2
6.6%
1.0%
9.5%
0.1%
30.2%
42.9p
0.6%
0.7%
(0.4)%
(2.6)%
29.4%
41.0p
1
2014 Adjusted operating profit has been restated to include the share of results of joint ventures after interest and tax
2014 tax charge on adjusting items is now stated after the benefit of goodwill amortisation for tax purposes only in the US (see
Note 8).
2
REVENUE AND ADJUSTED OPERATING PROFIT
The Group’s revenue grew by 6.6% in the year to £1,212.2m (2014: £1,137.0m) which is a 5.2% increase on a
constant currency basis and a 1.0% increase on an organic basis.
Adjusted operating profit of £365.6m was 9.5% higher than the prior year, which is a 6.0% increase on a constant
currency basis and 0.1% increase on an organic basis. The growth in revenue and adjusted operating profit
reflected growth in the Global Exhibitions and Academic Publishing Divisions that more than offset declines in
the other two Divisions. The adjusted operating margin grew by 80 basis points in the year to 30.2% from 29.4%
in 2014.
Further commentary on the performances by Division are provided in the Divisional Trading Review.
ADJUSTED AND ORGANIC MEASURES
Adjusted results are prepared in addition to the statutory results to provide a more comparable indication of the
Group’s underlying business performance compared to prior year. This is in line with similar adjusted measures
used by our peer companies, facilitating comparisons to peers. Adjusted Results exclude adjusting items such as
intangible asset amortisation arising from acquisitions and impairment charges. A full list of Adjusting Items
is provided in Note 5 and also described below.
Organic measures of revenue and adjusted operating profit refer to measures that are adjusted for material
acquisitions and disposals and the effect of changes in foreign currency exchange rates.
All results in this review are based on continuing operations.
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8
When calculating the 2015 adjusted operating profit of £365.6m, the following adjusting items have been
recognised by each Division:
Statutory operating profit
Add back:
Intangible asset amortisation1
Impairment
Restructuring and
reorganisation costs
Acquisition and integration
costs
Subsequent re-measurement
of contingent consideration
Adjusted operating profit
1
Academic
Publishing
£m
116.3
Business
Intelligence
£m
42.1
Global
Exhibitions
£m
67.0
Knowledge &
Networking
£m
11.1
Total
£m
236.5
44.4
-
16.1
1.1
28.7
-
10.3
12.8
99.5
13.9
3.3
3.7
1.4
5.3
13.7
0.8
-
1.4
0.1
2.3
164.8
0.2
63.2
(0.5)
98.0
39.6
(0.3)
365.6
Intangible asset amortisation is in respect of acquired intangibles, and excludes amortisation of software and product development
ADJUSTING ITEMS
The following table provides a summary of the Adjusting Items that have been excluded from Adjusted Results.
The total charge to operating profit for Adjusting Items was £129.1m (2014: £336.8m) with the major element
comprising amortisation of acquired intangible assets, totalling £99.5m (2014: £93.9m).
1
Redundancy and restructuring costs
Intangible asset amortisation1
Impairment – Goodwill
Impairment – Other
Subsequent re-measurement of contingent consideration
Adjusting items relating to share of results of joint ventures
Adjusting items in operating profit/(loss)
(Profit)/loss on disposal of subsidiaries and operations
Debt issue costs write-off
Adjusting items in profit/(loss) before tax
Tax related to adjusting items
Tax credit in respect of prior year items
2015
£m
16.0
99.5
13.9
(0.3)
129.1
(9.1)
120.0
(13.2)
-
2014
£m
25.4
93.9
193.4
25.6
(1.8)
0.3
336.8
2.8
1.2
340.8
(27.1)
(11.6)
Adjusting items in profit/(loss) for the year
106.8
302.1
Intangible asset amortisation is in respect of acquired intangibles and excludes amortisation of software and product development
Redundancy and restructuring costs of £16.0m (2014: £25.4m) related to costs incurred in non-recurring business
restructuring and changing the operating model to align with the Group’s Growth Acceleration Plan strategy in
Business Intelligence and Knowledge & Networking, and in integrating acquisitions in Academic Publishing.
There was a £13.9m charge from goodwill impairments arising from the £12.8m impairment of goodwill in a cashgenerating unit in the Knowledge & Networking Division and £1.1m in the Business Intelligence Division. In
2014 there were goodwill impairments totalling £193.4m, which included £189.0m arising in the Business
Intelligence Division with impairment to the carrying value of goodwill across the Consumer Information business
(subsequently disposed of in 2015) and the Pharma & Healthcare business.
The profit on disposal of subsidiaries and other operations of £9.1m (2014: £2.8m loss) arose from a £7.4m profit
from the disposal of the Consumer Information businesses, a £1.4m profit from the disposal of the conference
businesses in Sweden, Denmark and Netherlands and £0.3m from other disposals.
ADJUSTED NET FINANCE COSTS
Adjusted net finance costs, which consist principally of interest costs on private placement loan notes and bank
borrowings, net of interest receivable, increased by £1.5m to £25.9m. The increase is principally due to increased
finance costs from higher average net debt levels in 2015 reflecting the full year effect of additional debt used to
fund acquisitions completed in the latter part of 2014.
TAXATION
The Group tax charge on statutory Profit Before Tax (“PBT”) was 21.4% (2014: 63.5% credit). The statutory
effective tax rate reported for both 2015 and 2014 was affected by impairment charges which were not deductible
for tax purposes.
Across the Group, tax has been provided on adjusted PBT at an adjusted tax rate of 17.7%. This adjusted tax
rate reflects the benefits from profits generated in low tax jurisdictions. Calculation of the adjusted tax rate has
www.informa.com
9
been amended in 2015 to reflect the benefit of amortisation of goodwill for tax purposes only in the US, arising
from certain acquisitions. This has resulted in a restated adjusted tax rate of 18.9% (20.3% previously reported)
for 2014. This amendment brings the method of calculation of adjusted tax rate closer into line with other groups
in our industry sector, and more closely aligns cash taxes paid with the adjusted tax charge.
The Group benefits from tax efficient internal financing structures. Certain structures, which currently have an
annual value of approximately £7m to profits after tax of the Group will be affected by changes in UK tax
legislation to be introduced from 1 January 2017.
During 2015, the Group paid £30.7m (2014: £44.3m) of Corporation and similar taxes on profits, including
approximately £23.4m (2014: £25.0m) of UK corporation tax. The reduction in Corporation tax payments is largely
due to a one-off reduction in US tax payments which arises from the treatment of the Hanley Wood acquisition for
US tax purposes. The small reduction in UK tax payments reflects the reduction in UK corporation tax rates.
Our adjusted tax charge reconciles to cash taxes paid as follows:
Tax charge on adjusted PBT per Consolidated Income Statement
Deferred taxes
Current tax deductions in respect of adjusting items
Taxes paid in relation to earlier years less 2014 taxes payable in later periods
Withholding and other tax payments
Total corporate taxes paid
Taxes refunded from German authorities
Net income taxes paid per Consolidated Cash Flow Statement
2015
£m
60.2
2014
£m
58.5
(13.2)
(14.6)
(2.0)
0.3
30.7
30.7
(7.3)
(17.8)
9.1
2.2
44.7
(0.4)
44.3
The tax charge on adjusting items is now stated after the benefit of goodwill amortisation for tax purposes only in
the US. A further £11.5m (2014: £11.7m) of current tax deductions are taken on the amortisation of intangible
assets. These remain treated as an adjusting item and are included in the current tax deductions in respect of
adjusting items noted above.
The Group’s Total Tax Contribution (“TTC”), which is made up of all material taxes paid out of profits and other
material taxes generated by our businesses, was £154.7m (2014: £168.1m) in 2014. The UK element of our TTC
was £79.9m (2014: £81.6m). The fall in worldwide TTC was largely due to the one-off reduction in US corporate
tax payments arising from additional tax deductions attributable to the Hanley Wood acquisition. The small
reduction in UK TTC reflects lower corporation tax rates in the UK and VAT refunds arising from investments in
technology and systems in the UK, partly offset by higher employment taxes.
EARNINGS PER SHARE
Basic and diluted earnings per share (EPS) calculated on the statutory profit for the year for equity shareholders
of £171.4m, resulted in an EPS of 26.4p, compared to the loss per share of 8.6p in 2014.
Adjusted diluted EPS of 42.9p is 4.6% ahead of 2014 (2014: 41.0p as restated), reflecting the 11.4% increase in
adjusted profit, partly offset by the 6.6% increase in the average number of shares as there is the full year effect
of the November 2014 share placement of 45.0 million shares.
The calculation of adjusted diluted EPS in 2015 reflects the benefit of the amortisation of goodwill for tax purposes
only in the US arising from certain acquisitions. In order to provide comparability the 2014 figure has been
recalculated on a consistent basis to 2015 and this shows a restated adjusted diluted EPS of 41.0p (2014
adjusted diluted EPS was previously stated at 40.3p).
TRANSLATION IMPACT
The Group is particularly sensitive to movements in the US dollar against GBP, with the Euro the next most
significant currency.
In 2015 the Group received approximately 55% (2014: 48%) of its revenues and incurred approximately 43%
(2014: 39%) of its costs in USD or currencies pegged to USD. Each 1 cent movement in the USD to GBP
exchange rate has a circa £4.4m (2014: £3.4m) impact on revenue and a circa £2.0m (2014: £1.5m) impact on
adjusted operating profits and a circa 0.23p (2014: 0.16p) impact on adjusted diluted EPS.
In 2015 the Group received approximately 7% (2014: 8%) of its revenues and incurred approximately 6% (2014:
7%) of its costs in Euros. Each 1 cent movement in the Euro to GBP exchange rate has a circa £0.6m (2014:
£0.7m) impact on revenue and a circa £0.2m (2014: £0.2m) impact on adjusted operating profit and a circa 0.02p
(2014: 0.03p) impact on adjusted diluted EPS.
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10
The average and closing exchange rates for the two currencies are:
Average rate
2015
2014
USD
EUR
1.53
1.38
1.65
1.24
Closing rate
2015
2014
1.48
1.36
1.56
1.28
For debt covenant testing purposes, both profit and net debt are translated using the average rate of exchange
throughout the relevant period.
CASH FLOW
Management continue to focus heavily on cash flow, as the key driver of value in our operations, because of the
flexibility it enables for future investment, and because it provides a clear indication of whether the required
returns are being achieved by the business.
The Group continues to generate strong cash flows, with operating cash flow of £377.7m in 2015. This strength is
reflected in the cash conversion rate, expressed as a ratio of operating cash flow to Adjusted Operating Profit, of
103% (2014: 97%). Together with reductions in taxation payments, this resulted in the Group generating over
£300m of Free Cash Flow for the first time.
The following table shows the adjusted operating profit and Free Cash Flow reconciled to movements in net debt.
Free Cash Flow is a key financial measure of how much cash the business generates from operations and is
stated before cash flows arising from business and other asset acquisitions, business disposals, dividends paid
and the net cost or proceeds from shares acquired or issued.
Adjusted operating profit
Depreciation of property and equipment
Software and product development amortisation
Share-based payments
Loss on disposal of other assets
Adjusted share of joint venture results
Adjusted EBITDA
Net capital expenditure
Working capital movement
Operating cash flow
Restructuring and reorganisation
Net interest
Taxation
Free Cash Flow
Acquisitions and disposals
Dividends paid to shareholders
Dividends paid to non-controlling interest
Net shares (acquired)/issued
Net funds flow
Non-cash movements
Foreign exchange
Net debt at 1 January
Net debt at 31 December
2015
£m
365.6
6.1
12.8
2.6
0.1
0.1
387.3
(33.5)
23.9
377.7
(19.2)
(26.7)
(30.7)
301.1
(149.1)
(126.0)
(0.5)
(0.4)
25.1
(1.2)
(43.0)
(876.2)
(895.3)
2014
£m
334.0
6.1
12.1
1.7
0.1
354.0
(14.7)
(15.5)
323.8
(21.0)
(26.0)
(44.3)
232.5
(372.8)
(114.0)
(0.9)
204.1
(51.1)
(2.4)
(40.1)
(782.6)
(876.2)
Net capital expenditure of £33.5m in 2015 includes £18.9m of capital investment as part of the 2014-2017 Growth
Acceleration Plan.
The working capital inflow of £23.9m has improved by £39.4m against 2014 when there was an outflow of
£15.5m. The primary driver of this was the delayed receipt in 2014 of approximately £15m from a subscription
agent in the Academic Publishing Division where the cash was subsequently received in 2015.
Acquisitions and disposals of £149.1m (2014: £372.8m) included £93.2m (2014: £14.0m) of spend on other
intangible assets and investments and £68.8m (2014: £357.4m) on acquisition of subsidiaries, net of cash
acquired, offset by net proceeds from disposals of £12.9m.
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11
OPERATING CASH FLOW RECONCILED TO FREE CASH FLOW
The following table reconciles net cash inflow from operating activities as shown in the Consolidated Cash Flow
Statement to Free Cash Flow. The reconciling items are interest received and net capital expenditure.
Net cash inflow from operating activities
Interest received and other items
2015
£m
333.9
0.7
2014
£m
246.6
0.6
Purchase of property and equipment
Proceeds on disposal of property and equipment
Purchase of intangible software assets
Product development costs additions
Net capital expenditure
(7.2)
0.4
(23.2)
(3.5)
(33.5)
(4.8)
0.1
(8.3)
(1.7)
(14.7)
Free Cash Flow
301.1
232.5
PENSIONS
When considering the Group’s cash flows, it should be noted that the Group’s financial obligations to its pension
schemes remain relatively small compared with the size of the Group. Net pension liabilities at 31 December 2015
are £4.0m (2014: £10.1m) and the cash contributions paid towards reducing the scheme deficits were £0.5m in
2015. The contributions for the ongoing service will be £nil in 2016 as both schemes are closed to future accrual
of benefits and there are no deficit funding requirements.
FUNDING
One of the six key disciplines of the Growth Acceleration Plan is Funding; the discipline to retain a robust and
flexible financing framework to fund investment and acquisition strategy.
This strategy has been progressed in two key ways in the second half of 2015. Firstly, the Group issued USD
250m of private placement loan notes, with a maturity of seven years (USD 120m) and ten years (USD 130m), at
an average interest rate of 4.0%. This financing funded the USD 110m of private placement loan notes that
matured in December 2015. Secondly, the Group extended its five year £900m Revolving Credit Facility by a
further year, meaning that it now matures in October 2020.
As at 31 December 2015 the group therefore had available committed funding of £1,474.6m, comprising the
£900.0m Revolving Credit Facility and £574.6m of private placement loan notes. The Revolving Credit Facility
was £359.1m drawn down at 31 December 2015 (31 December 2014: £455.2m).
The £574.6m of private placement loan notes at 31 December 2015 (31 December 2014: £462.2m) range in
maturity from December 2017 to October 2025. The average maturity length is 5.5 years (2014: 4.3 years).
The principal financial covenant ratios under the private placement and Revolving Credit Facility are maximum net
debt to EBITDA of 3.5 times and minimum EBITDA interest cover of 4.0 times, tested semi-annually. At 31
December 2015 both financial covenants were comfortably achieved. The ratio of net debt to EBITDA was 2.2
times (at 31 December 2014: 2.2 times) calculated as per our facility agreements (using average exchange rates
and adjusted for a full year’s trading for 2015 acquisitions). The ratio of EBITDA to net interest payable was 14.9
times (at 31 December 2014: 14.4 times).
Cash at bank and in hand
Bank overdraft
Loans receivable
Private placement loan notes
Private placement fees
Bank borrowings - revolving credit facility
Bank loan fees
Net debt
2015
£m
(34.3)
2.0
(0.3)
574.6
(1.6)
359.1
(4.2)
895.3
2014
£m
(38.6)
3.3
462.2
(1.2)
455.2
(4.7)
876.2
Net debt increased by £19.1m in 2015, driven primarily by the foreign exchange effect (£43.0m) of the USD
strengthening from 1.56 to 1.48 over the year, partly offset by the reduction in net debt arising from cash flows
(£25.1m).
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12
ACQUISITION STRATEGY
Another key discipline of the Growth Acceleration Plan is the Acquisition Strategy; a targeted and disciplined
approach to build scale and capability across priority industry verticals and geographic markets.
Acquisitions are assessed on a case-by-case basis against a broad set of financial and strategic criteria. For bolton acquisitions, these have to meet strict acquisition criteria which includes delivering returns in excess of the
Group's weighted average cost of capital in the first full year and being earnings enhancing in the first full year of
ownership. However, for selective acquisitions, the Group will take a longer-term view to allow time for full
integration of the acquired business, coupled with additional investment to maximise the long-term returns it
generates.
In 2015 there was total cash spend of £162.0m (2014: £371.4m) on acquisitions of subsidiaries and other
intangible assets and this focussed on the Academic Publishing and Global Exhibitions Divisions. The principal
acquisitions and business asset intangible acquisitions are shown below:
Acquired businesses / other
intangible asset acquisitions
Division
Acquisition of subsidiaries net of cash acquired:
WS Maney & Son Limited
Academic Publishing
Ashgate Publishing
Academic Publishing
Hanley Wood Exhibitions
Global Exhibitions
Virgo Group
Global Exhibitions
Other
Other intangible asset acquisitions:
FIME (asset purchase)
US book lists (asset purchase)
Other intangible asset purchases
Global Exhibitions
Academic Publishing
Total net cash paid on acquisition of subsidiaries and other
intangible asset acquisitions
2015
Net cash paid
£m
2014
Net cash paid
£m
21.3
19.1
28.4
68.8
239.8
85.6
32.0
357.4
36.3
16.2
40.7
93.2
162.0
14.0
14.0
371.4
PORTFOLIO MANAGEMENT
One of the key disciplines within the Growth Acceleration Plan is to continually reassess the mix and focus of the
Group. This enables us to ensure we are allocating capital to the right areas, where the potential to improve returns
are greatest.
In 2015 this led to the disposal of the Consumer Information businesses and in Europe the disposal of the
conferences businesses in Sweden, Denmark and Netherlands. The total profit on disposal of subsidiaries and
operations was £9.1m and net cash proceeds were £12.9m.
The combination of the Portfolio Management strategy, and the drive to improve the operational performance of the
business inherent in the Growth Acceleration Plan, results in an improved 2015 Group Return on Capital Employed
(ROCE) of 9.2% (2014: 8.8%).
DIVIDEND
As outlined in the Operational Review, there will be a 4.1% increase in the dividend per share in respect of 2015. The
proposed final dividend is 13.55p per share (2014: 12.90p per share) representing a 5.0% increase. Subject to
shareholder approval at the AGM, the final dividend will be paid on 26 May 2016 to ordinary shareholders registered
as at the close of business on 29 April 2016. This will result in total dividends for the year of 20.1p per share (2014:
19.3p per share). The improved earnings performance means dividend cover on an adjusted earnings basis has
remained consistent at 2.1 times total earnings (2014: 2.1 times).
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13
Annual Report and Financial Statements 2015
The Annual Report and Financial Statements for the financial year ended 31 December 2015 will be sent to
shareholders and published on www.informa.com in April 2016.
Copies of this announcement may be obtained during normal business hours from the Company Secretary at the
Company’s office at 5 Howick Place, London, SW1P 1WG.
Cautionary Statements
This document contains forward looking statements. These statements are subject to a number of risks and
uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in
such forward looking statements. The terms 'expect', 'should be', 'will be' and similar expressions identify forward
looking statements. Factors which may cause future outcomes to differ from those foreseen in forward looking
statements include, but are not limited to: general economic conditions and business conditions in Informa's markets;
exchange rate fluctuations, customers' acceptance of its products and services; the actions of competitors; legislative,
fiscal and regulatory developments; changes in law and legal interpretation affecting Informa's intellectual property
rights and internet communications; and the impact of technological change. These forward looking statements speak
only as of the date of this interim management report. Except as required by any applicable law or regulation, the
Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward
looking statements contained in this document to reflect any change in the Group’s expectations or any change in
events, conditions or circumstances on which any such statement is based.
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14
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2015
Note
Adjusted
results
2015
£m
Adjusting
items
2015
£m
Statutory
results
2015
£m
Adjusted
results
20141
£m
Adjusting
items
20141
£m
Statutory
results
2014
£m
4
1,212.2
(846.5)
−
(129.1)
1,212.2
(975.6)
1,137.0
(802.9)
−
(336.5)
1,137.0
(1,139.4)
365.7
(0.1)
365.6
(129.1)
−
(129.1)
236.6
(0.1)
236.5
334.1
(0.1)
334.0
(336.5)
(0.3)
(336.8)
(2.4)
(0.4)
(2.8)
−
4.7
(30.6)
339.7
(60.2)
9.1
−
−
(120.0)
13.2
9.1
4.7
(30.6)
219.7
(47.0)
−
3.6
(28.0)
309.6
(58.5)
(2.8)
−
(1.2)
(340.8)
38.7
(2.8)
3.6
(29.2)
(31.2)
(19.8)
Profit/(loss) for the year
279.5
(106.8)
172.7
251.1
(302.1)
(51.0)
Attributable to:
– Equity holders of the
Company
– Non-controlling interest
278.2
1.3
(106.8)
-
171.4
1.3
249.7
1.4
(302.1)
-
(52.4)
1.4
26.4
26.4
41.0
41.0
Continuing operations
Revenue
Net operating expenses
Operating profit/(loss) before
joint ventures
Share of results of joint ventures
Operating profit/(loss)
Profit/(loss) on disposal of
subsidiaries and operations
Investment income
Finance costs
Profit/(loss) before tax
Tax (charge)/credit
Earnings per share
– Basic (p)
– Diluted (p)
1
15
6
7
8
10
10
42.9
42.9
(8.6)
(8.6)
2014 tax charge on adjusting items is now stated after the benefit of goodwill amortisation for tax purposes only in the USA.
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15
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2015
2015
2014
£m
172.7
£m
(51.0)
6.0
(1.2)
(8.0)
1.7
4.8
(6.3)
−
−
(14.6)
(0.2)
(0.3)
7.9
−
(14.6)
0.1
7.5
Other comprehensive (expense)/income for the year
Total comprehensive income/(expense) for the year
(9.8)
162.9
1.2
(49.8)
Total comprehensive income attributable to:
– Equity holders of the Company
– Non-controlling interest
161.6
1.3
(51.2)
1.4
Profit/(loss) for the year
Items that will not be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on defined benefit pension schemes
Tax relating to items that will not be reclassified to profit or loss
Total items that will not be reclassified subsequently to profit or
loss
Items that may be reclassified subsequently to profit or loss:
Change in fair value of cash flow hedges
Termination of interest rate swaps
Net exchange (losses)/gains on translation of foreign operations
Tax relating to items that may be reclassified subsequently to profit or
loss
Total items that may be reclassified subsequently to profit or loss
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16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2015
At 1 January 2014
Loss for the year
Change in fair value of
cash flow hedges
Termination of interest
rate swaps
Exchange gain on
translation of foreign
operations
Actuarial loss on defined
benefit pension schemes
Tax relating to
components of other
comprehensive income
Total comprehensive
expense for the year
Dividends to shareholders
(Note 9)
Issue of shares
Inversion accounting
Issue of shares under
scheme of arrangement
Capital reduction
Share award expense
Own shares purchased
Put option on acquisition
of non-controlling interest
Transfer of vested LTIPs
At 1 January 2015
Profit for the year
Exchange loss on
translation of foreign
operations
Actuarial gain on defined
benefit pension schemes
Tax relating to
components of other
comprehensive income
Total comprehensive
income/(expense) for the
year
Dividends to shareholders
(Note 9)
Dividends to Noncontrolling interests
Share award expense
Purchase of subsidiary
from non-controlling
interest
Own shares purchased
Transfer of vested LTIPs
At 31 December 2015
www.informa.com
Share
capital
Share
premium
account
Translation
reserve
Other
reserves
Retained
earnings
Total
Noncontrolling
interest
Total
equity
£m
0.6
−
£m
2.1
−
£m
(27.5)
−
£m
(1,218.4)
−
£m
2,433.3
(52.4)
£m
1,190.1
(52.4)
£m
1.0
1.4
£m
1,191.1
(51.0)
−
−
−
(0.2)
−
(0.2)
−
(0.2)
−
−
−
(0.3)
−
(0.3)
−
(0.3)
−
−
7.9
−
−
7.9
−
7.9
−
−
−
−
(8.0)
(8.0)
−
(8.0)
−
−
−
0.1
1.7
1.8
−
1.8
−
−
7.9
(0.4)
(58.7)
(51.2)
1.4
(49.8)
−
−
−
−
204.0
−
−
−
−
−
−
1,756.0
(114.0)
−
(1,756.0)
(114.0)
204.0
−
(0.9)
−
−
(114.9)
204.0
−
2,189.3
(2,189.3)
−
−
(2.1)
−
−
−
−
−
−
−
(2,189.9)
−
1.7
(0.1)
2.7
2,189.3
−
−
−
−
1.7
(0.1)
−
−
−
−
−
−
1.7
(0.1)
−
−
0.6
−
−
−
204.0
−
−
−
(19.6)
−
(0.3)
(2.1)
(1,653.5)
−
−
2.1
2,698.7
171.4
(0.3)
−
1,230.2
171.4
−
−
1.5
1.3
(0.3)
−
1,231.7
172.7
−
−
(14.6)
−
−
(14.6)
−
(14.6)
−
−
−
−
6.0
6.0
−
6.0
−
−
−
−
(1.2)
(1.2)
−
(1.2)
−
−
(14.6)
−
176.2
161.6
1.3
162.9
-
-
-
-
(126.1)
(126.1)
−
(126.1)
−
-
−
-
−
-
−
2.6
−
-
−
2.6
(0.5)
-
(0.5)
2.6
-
-
-
0.6
204.0
(34.2)
(0.4)
(1.5)
(1,652.8)
(1.9)
1.5
2,748.4
(1.9)
(0.4)
1,266.0
(0.2)
−
−
2.1
(2.1)
(0.4)
1,268.1
17
CONSOLIDATED BALANCE SHEET
As at 31 December 2015
2015
20141
£m
£m
1,709.6
968.2
17.3
0.1
1.4
0.6
36.2
2,733.4
1,666.9
897.2
17.5
0.2
30.9
2,612.7
45.0
242.9
4.2
34.3
326.4
3,059.8
44.5
218.9
4.2
38.6
306.2
2,918.9
11
(2.0)
(30.4)
(24.0)
(207.9)
(385.7)
(650.0)
(73.7)
(27.3)
(16.4)
(198.0)
(342.9)
(658.3)
11
(927.9)
(183.3)
(4.0)
(21.0)
(5.5)
(1,141.7)
(1,791.7)
1,268.1
(841.1)
(160.0)
(10.1)
(11.8)
(5.9)
(1,028.9)
(1,687.2)
1,231.7
12
0.6
204.0
(34.2)
(1,652.8)
2,748.4
1,266.0
2.1
1,268.1
0.6
204.0
(19.6)
(1,653.5)
2,698.7
1,230.2
1.5
1,231.7
Notes
Non-current assets
Goodwill
Other intangible assets
Property and equipment
Investments in joint ventures
Investments
Deferred tax assets
Other receivables
Current assets
Inventory
Trade and other receivables
Current tax asset
Cash at bank and in hand
Total assets
Current liabilities
Short-term borrowings
Current tax liabilities
Provisions
Trade and other payables
Deferred income
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Retirement benefit obligation
Provisions
Trade and other payables
Total liabilities
Net assets
Equity
Share capital
Share premium account
Translation reserve
Other reserves
Retained earnings
Equity attributable to equity holders of the parent
Non-controlling interest
Total equity
¹ Restated for re-measurement of prior year acquisition
These financial statements were approved by the Board of Directors on 10 February 2016.
www.informa.com
18
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2015
Notes
Operating activities
Cash generated by operations
Income taxes paid
Interest paid
Net cash inflow from operating activities
Investing activities
Interest received
Purchase of property and equipment
Proceeds on disposal of property and equipment
Purchase of intangible software assets
Product development costs additions
Purchase of intangibles related to titles, brands and customer
relationships
Proceeds on disposal of other intangible assets
Acquisition of subsidiaries and operations, net of cash acquired
Cash inflow/(outflow) on disposal of subsidiaries and operations
Purchase of investment
Net cash outflow from investing activities
Financing activities
Dividends paid to shareholders
Dividends paid to non-controlling interest
Repayment of loans
New loan advances
Repayment of private placement borrowings
New private placement borrowings
Borrowing fees paid
Cash outflow on issue of other loans
Cash (outflow)/inflow from the net issue of share capital
Net cash (outflow)/inflow from financing activities
Net increase in cash and cash equivalents
Effect of foreign exchange rate changes
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
13
15
9
13
13
13
13
2015
£m
20141
£m
392.0
(30.7)
(27.4)
333.9
317.5
(44.3)
(26.6)
246.6
0.7
(7.2)
0.4
(23.2)
(3.5)
0.4
(4.8)
0.1
(8.3)
(1.7)
(92.5)
0.1
(68.8)
12.8
(0.7)
(181.9)
(14.0)
0.5
(357.4)
(1.7)
(386.9)
(126.0)
(0.5)
(928.9)
812.0
(73.3)
166.5
(1.1)
(0.3)
(0.4)
(152.0)
0.0
(3.0)
35.3
32.3
(114.0)
(0.9)
(382.3)
439.2
(4.8)
204.1
141.3
1.0
2.8
31.5
35.3
2015
2014
£m
0.0
25.1
25.1
(44.2)
(19.1)
(876.2)
(895.3)
£m
1.0
(52.1)
(51.1)
(42.5)
(93.6)
(782.6)
(876.2)
¹ 2014 interest paid restated for borrowing fees payments now classified within financing activities
RECONCILIATION OF MOVEMENT IN NET DEBT
For the year ended 31 December 2015
Increase in cash and cash equivalents in the year
Cash flows from repayment/(draw-down) of borrowings
Change in net debt resulting from cash flows
Other non-cash movements including foreign exchange
Movement in net debt in the year
Net debt at beginning of the year
Net debt at end of the year
www.informa.com
13
13
13
13
13
19
NOTES TO THE FULL YEAR RESULTS
For the year ended 31 December 2015
1 GENERAL INFORMATION
Informa PLC (the Company) is a company incorporated in England and Wales under the Companies Act 2006
and is listed on the London Stock Exchange. The Company’s registered number is 08860726. The address of the
registered office is 5 Howick Place, London, SW1P 1WG. The Consolidated Financial Statements as at 31
December 2015 and for year then ended comprise those of the Company and its subsidiaries and its interests in
joint ventures (together referred to as the Group).
These financial statements are presented in pounds sterling ("GBP"), the functional currency of the parent
company, Informa PLC.
2 BASIS OF PREPARATION
The financial information for the year ended 31 December 2015 does not constitute the statutory financial
statements for that year, but is derived from those financial statements. While the financial information in these
Full Year Results has been prepared in accordance with International Financial Reporting Standards (IFRS),
these results do not in isolation contain sufficient information to comply with IFRS. Those financial statements
have not yet been delivered to the Registrar of Companies, but include the auditor’s report which was unqualified
and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
The directors of Informa PLC, having made appropriate enquiries, consider that adequate resources exist for the
Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt
the going concern basis in preparing the Annual Report and Financial Statements for the year ended 31
December 2015.
3 BUSINESS SEGMENTS
Management has identified reportable segments based on financial information used by the Executive Directors in
allocating resources and making strategic decisions. We consider the Chief Operating Decision Maker to be the
Executive Directors.
The Group’s four identified reporting segments under IFRS 8 Operating Segments are as follows:
Academic Publishing
The Academic Publishing Division provides books and journals, both in print and electronic formats, primarily for
academic and research users, in the subject areas of Humanities & Social Sciences, and Science, Technology &
Medicine. It operates as Taylor & Francis with other imprints including Routledge, CRC Press, Garland Science
and Cogent OA.
Business Intelligence
The Business Intelligence Division provides specialist data-driven intelligence and insight to professionals in niche
communities. The digital subscription products consist of rich datasets and valuable insight, across the
Agricultural, Financial, Maritime, Pharmaceutical, and Technology, Media and Telecoms sectors.
Global Exhibitions
The Global Exhibitions Division is an international exhibitions organiser. It operates business to business
exhibitions and trade shows, as well as a number of consumer events, enabling specialist communities to meet
face-to-face, and conduct business.
Knowledge & Networking
The Knowledge & Networking Division provides conferences and training courses globally. It creates and
connects communities based on the sharing of insights and learning, providing attendees with the opportunity to
meet, network and share knowledge.
www.informa.com
20
Segment revenue and results
31 December 2015
Academic
Publishing
Business
Intelligence
Global
Exhibitions
Knowledge &
Networking
Total
£m
£m
£m
£m
£m
Revenue
Adjusted operating profit before Joint
ventures
Adjusted share of results of joint ventures
Adjusted operating profit
Restructuring and reorganisation costs
(Note 5)
Acquisition and integration costs (Note 5)
447.4
276.8
262.5
225.5
1,212.2
164.8
164.8
63.2
63.2
98.1
(0.1)
98.0
39.6
39.6
365.7
(0.1)
365.6
(3.3)
(0.8)
(3.7)
(1.4)
(1.4)
(5.3)
(0.1)
(13.7)
(2.3)
Intangible asset amortisation1
Impairment (Note 5)
Subsequent re-measurement of
contingent consideration (Note 5)
Operating profit
Profit on disposal of businesses (Note 15)
Finance costs (Note 7)
Investment income (Note 6)
(44.4)
(16.1)
(1.1)
(28.7)
(10.3)
(12.8)
(99.5)
(13.9)
(0.2)
42.1
0.5
67.0
-
0.3
236.5
9.1
(30.6)
4.7
-
116.3
-
-
11.1
219.7
Profit before tax
¹ Excludes intangible product development and software amortisation.
Segment revenue and results
31 December 2014
Academic
Publishing
Revenue (Note 4)
Adjusted operating profit before Joint
ventures
Adjusted share of results of joint
ventures
Adjusted operating profit
Restructuring and reorganisation
costs (Note 5)
Acquisition and integration costs (Note
5)
Intangible asset amortisation 1
Impairment (Note 5)
Subsequent re-measurement of
contingent consideration (Note 5)
Adjusting items relating to share of
result of joint ventures
Operating profit/(loss)
Loss on disposal of businesses (Note
15)
Finance costs (Note 7)
Investment income (Note 6)
Loss before tax
Business
Intelligence
Global
Exhibitions
Knowledge &
Networking
Total1
£m
£m
£m
£m
£m
408.9
281.7
200.2
246.2
1,137.0
150.0
75.2
67.4
41.5
334.1
150.0
75.2
(0.1)
67.3
41.5
(0.1)
334.0
(2.5)
(10.5)
(3.0)
(4.7)
(20.7)
(1.0)
(40.2)
−
(16.2)
(205.3)
(3.7)
(20.9)
(13.7)
(16.6)
-
(4.7)
(93.9)
(219.0)
-
1.6
(1.6)
1.8
1.8
106.3
(155.2)
(0.3)
24.1
22.0
(0.3)
(2.8)
(2.8)
(29.2)
3.6
(31.2)
¹ Excludes intangible product development and software amortisation.
Adjusted operating result by operating segment is the measure reported to the Executive Directors for the
purpose of resource allocation and assessment of segment performance. Finance costs and investment income
are not allocated to segments, as this type of activity is driven by the central treasury function, which manages the
cash positions of the Group.
www.informa.com
21
Segment assets
2015
2014
Academic Publishing
Business Intelligence
Global Exhibitions
Knowledge & Networking
Total segment assets
Unallocated assets
£m
1,114.4
761.7
718.6
374.3
2,969.0
90.8
£m
1,025.3
791.6
691.4
360.2
2,868.5
50.4
Total assets
3,059.8
2,918.9
For the purpose of monitoring segment performance and allocating resources between segments, management
monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to
reportable segments except for certain centrally held balances, including some intangible software assets relating
to group infrastructure, balances receivable from businesses sold and taxation (current and deferred). Assets
used jointly by reportable segments are allocated on the basis of the revenues earned by individual reportable
segment.
The Group’s revenues from its major products and services were as follows:
2015
2014
£m
£m
Academic Publishing
Subscriptions
Unit sales
216.4
231.0
218.6
190.3
Total Academic Publishing
447.4
408.9
Business Intelligence
Subscriptions
Unit sales
Advertising
244.9
23.0
8.9
246.2
25.1
10.4
Total Business Intelligence
276.8
281.7
Global Exhibitions
Attendee
Exhibitor
Sponsorship
Advertising
33.1
199.2
23.3
6.9
20.1
157.5
16.2
6.4
Total Global Exhibitions
262.5
200.2
123.5
42.5
53.7
5.8
225.5
1,212.2
147.5
36.9
56.8
5.0
246.2
1,137.0
Knowledge & Networking
Attendee
Exhibitor
Sponsorship
Advertising
Total Knowledge & Networking
Total revenue
www.informa.com
22
Information about major customers
The Group’s revenue by location of customer and information about its segment assets by geographical location
are detailed below:
Revenue
2015
£m
143.1
511.5
215.5
342.1
Geographical information
UK
North America
Continental Europe
Rest of World
1,212.2
2014
£m
149.0
416.4
235.1
336.5
1,137.0
Segment assets
2015
2014
£m
£m
1,229.7
1,130.2
1,495.9
1,369.0
54.7
77.3
279.5
342.4
3,059.8
2,918.9
No individual customer amounts to more than 10% of the Group’s revenue in either 2015 or 2014.
4 OPERATING PROFIT
Operating profit has been arrived at after charging/(crediting):
Adjusted
results
2015
£m
Adjusting
items
2015
£m
Statutory
results
2015
£m
Adjusted
results
2014
£m
Adjusting
items
2014
£m
Statutory
results
2014
£m
377.6
-
377.6
367.2
−
367.2
333.6
-
333.6
319.9
−
319.9
12.8
6.1
1.9
99.5
13.9
-
112.3
6.1
13.9
1.9
12.1
6.1
−
−
−
0.8
93.9
−
193.4
11.1
14.5
−
106.0
6.1
193.4
11.1
14.5
0.8
1.3
-
1.3
1.0
−
1.0
18.1
1.3
-
18.1
1.3
17.6
1.0
−
−
17.6
1.0
5
5
-
13.7
2.3
13.7
2.3
−
−
20.7
4.7
20.7
4.7
5
93.8
(0.3)
-
(0.3)
93.8
−
77.2
(1.8)
−
(1.8)
77.2
846.5
129.1
975.6
802.9
336.5
1,139.4
Notes
Cost of sales¹
Staff costs (excluding
adjusting redundancy costs)
Amortisation of other
intangible assets
Depreciation
Impairment – Goodwill
Impairment– Intangibles
Impairment– Loan receivable
Net foreign exchange loss
Auditor's remuneration for
audit services (see below)
Operating lease expenses
– Land and buildings
– Other
Restructuring and
reorganisation costs
Acquisition related costs
Subsequent re-measurement
of contingent consideration
Other operating expenses
Total net operating expenses
before joint ventures
5
5
5
¹ Cost of sales includes £45.9m (2014: £36.6m) for inventory recognised as an expense including pre-publication amortisation
www.informa.com
23
5 ADJUSTING ITEMS
The following charges/(credits) are presented as adjusting items:
Redundancy and restructuring costs
Redundancy costs
Reorganisation costs
Vacant property costs
Re-domicile costs
Acquisition and integration costs
Intangible amortisation and impairment
Intangible asset amortisation
Impairment – Goodwill
Impairment – Other intangible assets
Impairment – Loan receivable
Subsequent re-measurement of contingent consideration
Adjusting items in operating profit/(loss) before joint ventures
Adjusting items relating to share of results of joint ventures
Adjusting items in operating profit/(loss)
(Profit)/loss on disposal of subsidiaries and operations
Debt issue costs write-off on early repayment of revolving credit facility
Adjusting items in profit/(loss) before tax
Tax related to adjusting items
Tax credit in respect of prior year items
Adjusting items in profit/(loss) for the year
Notes
2015
£m
2014
£m
4
11.4
0.4
1.9
2.3
14.2
2.1
1.5
2.9
4.7
99.5
13.9
(0.3)
129.1
129.1
(9.1)
120.0
(13.2)
-
93.9
193.4
11.1
14.5
(1.8)
336.5
0.3
336.8
2.8
1.2
340.8
(27.1)
(11.6)
106.8
302.1
4
15
7
8
8
The principal adjustments made are in respect of:

Redundancy, reorganisation and vacant property costs – these are costs incurred by the Group business
restructuring and changing the operating model to align with the Group’s revised strategy, the “Growth
Acceleration Plan”;

Acquisition and integration costs – the costs incurred by the Group in acquiring and integrating share
and asset acquisitions;

Intangible asset amortisation – the amortisation charge in respect of intangible assets acquired through
business combinations or the acquisition of trade and assets are excluded from adjusted results as they
do not relate to underlying trading;

Impairment – the Group tests for impairment on an annual basis or more frequently when an indicator
exists. Impairment charges are individually disclosed and are excluded from adjusted results as they do
not relate to underlying trading.

Subsequent re-measurement of contingent consideration is recognised in the period as a charge or
credit to the income statement unless these qualify as measurement period adjustments arising within
one year from the acquisition date. They are excluded from adjusted results as they do not relate to
underlying trading;

(Profit)/loss on disposal of subsidiaries and operations – the profit on disposal includes the fair value of
consideration less the net assets/(liabilities) disposed, non-controlling interest and costs directly
attributable with the disposal;

Early repayment fee relating to the revolving credit facility – capitalised facility fees are amortised over
the loan periods but where revolving credit facilities have been terminated early, the unamortised fees
are immediately expensed. This accelerated expense is not viewed as being part of the underlying
results and is thus excluded from the adjusted results;

Share of results of joint ventures – the share of results includes intangible asset amortisation and
impairment charge related to joint ventures, which is excluded from adjusted results in line with the
presentation of the Group’s intangible asset amortisation and treatment of impairment; and

The tax related to adjusting items is the tax effect of the items above, and any significant tax items are
excluded from underlying results.
The tax credit in respect of prior year items is mainly attributable to adjustments relating to historic disposals.
www.informa.com
24
6 INVESTMENT INCOME
Loans and receivables:
Interest income on bank deposits
Interest income on non-current receivables
2015
2014
£m
£m
0.7
4.0
4.7
0.5
3.1
3.6
2015
2014
£m
30.1
0.3
30.4
0.2
£m
27.8
0.2
28.0
1.2
-
30.6
29.2
7 FINANCE COSTS
Interest expense on financial liabilities measured at amortised cost
Interest cost on pension scheme liabilities
Total interest expense
Debt issue cost write-off on early repayment of revolving credit facility
Fair value loss on financial instruments through the income statement
8 TAXATION
The tax charge comprises:
2015
2014
£m
£m
Current tax:
UK
USA
UAE & Monaco
Rest of world
Current year
Tax credit in respect of prior year items presented as adjusting item
19.3
6.3
1.0
6.0
32.6
−
24.9
0.6
0.3
7.6
33.4
(8.2)
Deferred tax:
Current year
Tax credit in respect of prior year items presented as adjusting item
Credit arising from UK corporation tax rate change
Total tax charge on profit on ordinary activities
14.4
−
−
47.0
(2.4)
(3.4)
0.4
19.8
www.informa.com
25
The tax on adjusting items within the Consolidated Income Statement relates to the following:
Redundancy and restructuring costs
Amortisation of other intangible assets
Benefit of US goodwill amortisation for tax purposes only
Impairment
Subsequent re-measurement of contingent consideration
Profit/loss on disposal of businesses
Debt issue costs write-off on early repayment of revolving credit
facility
Adjusted items relating to share of results of joint ventures
Deferred tax (charge)/credit arising from UK corporation tax rate
change
Tax credit in respect of prior year items
Notes
5
5
5
5
15
Gross
2015
Tax
2015
Gross
2014
Tax1
2014
£m
(16.0)
(99.5)
(13.9)
0.3
9.1
£m
3.1
17.7
(7.4)
(0.2)
-
£m
(25.4)
(93.9)
(219.0)
1.8
(2.8)
£m
5.5
25.6
(4.3)
−
0.4
−
−
-
-
(1.2)
(0.3)
0.3
−
-
-
−
−
(0.4)
11.6
(120.0)
13.2
(340.8)
38.7
5
5
1
The tax charge on adjusted profits is now stated after the benefit of goodwill amortisation for tax purposes only in the USA which was previously taken in arriving at adjusted
profits after taxation. There is no impact on the total charge for the year. The tax credit on adjusting items was previously stated at £43.0m for 2014 and the effect of this
change was to reduce the tax credit on adjusting items by £4.3m.
The current and deferred tax is calculated on the estimated assessable profit for the year. Taxation is calculated
on each jurisdiction based on the prevailing rates of that jurisdiction.
The total tax charge/(credit) for the year can be reconciled to the accounting profit as follows:
2015
£m
Profit/(loss) before tax
2014
%
219.7
£m
%
(31.2)
Tax (credit)/charge at effective UK statutory rate of 20.25% (2014: 21.5%)
Non-deductible impairments
Other non-deductible expenses & similar items
Profits taxed at different rates
Benefits from financing structures
Tax incentives and foreign tax credits
Losses in certain jurisdictions that have not been recognised
Deferred tax credit arising from UK corporation tax rate change
Tax credit in respect of prior year items presented as adjusting item
44.5
2.9
6.3
3.3
(8.2)
(3.4)
1.6
-
20.2
1.3
2.9
1.5
(3.7)
(1.5)
0.7
-
(6.7)
51.6
6.8
(5.6)
(11.1)
(7.2)
3.2
0.4
(11.6)
21.5
(165.4)
(21.8)
17.9
35.6
23.1
(10.3)
(1.3)
37.2
Tax charge and effective rate for the year
47.0
21.4
19.8
(63.5)
In addition to the income tax charge to the Consolidated Income Statement, a tax charge of £1.2m (2014: credit of
£1.8m) has been recognised directly in the Consolidated Statement of Comprehensive Income during the year.
9 DIVIDENDS
Amounts recognised as distributions to equity holders in the year:
Second interim dividend for the year ended 31 December 2013 of 12.5p per share
Interim dividend for the year ended 31 December 2014 of 6.4p per share
Final dividend for the year ended 31 December 2014 of 12.9p per share
Interim dividend for the year ended 31 December 2015 of 6.55p per share
Proposed final dividend for the year ended 31 December 2015
of 13.55p per share (2014: 12.9p per share)
2015
£m
2014
£m
83.6
42.5
75.4
38.6
–
–
126.1
114.0
87.8
83.7
As at 31 December 2015 £0.1m (2014: £0.1m) of dividends are still to be paid. As at 31 December 2015 the
shares held by the ESOP Trust of 737,272 (2014: 737,272) ordinary shares of 0.1 pence each, waived their rights
to receive dividends.
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26
10 EARNINGS PER SHARE
Basic
The basic earnings per share calculation is based on a profit attributable to equity shareholders of the parent of
£171.4m (2014: £52.4m loss). This profit on ordinary activities after taxation is divided by the weighted average
number of shares in issue (less those non-vested shares held by employee share ownership trusts) which is
648,203,977 (2014: 608,258,772).
Diluted
The diluted earnings per share calculation is based on the basic earnings per share calculation above except that
the weighted average number of shares includes all potentially dilutive options granted by the reporting date as if
those options had been exercised on the first day of the accounting period or the date of the grant, if later, giving
a weighted average of 684,660,616 (2014: 608,309,328).
The table below sets out the adjustment in respect of dilutive potential ordinary shares:
2015
2014
Weighted average number of shares used in basic earnings per share calculation
Effect of dilutive potential ordinary shares
648,203,977
456,639
608,258,772
50,556
Weighted average number of shares used in diluted earnings per share
calculation
648,660,616
608,309,328
Earnings per share
The basic and diluted adjusted earnings per share calculations have been made to provide additional useful
information on the underlying performance. Profits are based on operations attributable to equity shareholders
and are adjusted to exclude items that in the opinion of the directors would distort underlying results with these
items detailed in note 5.
Earnings per share (EPS):
Earnings
2015
£m
Profit/(loss) for the year
Non-controlling interest
Earnings for the purpose of basic EPS/ Basic EPS
Effect of dilutive potential ordinary shares
Earnings for the purpose of diluted EPS / Diluted
EPS
Adjusted earnings per share:
Earnings for the purpose of basic EPS/ Basic EPS
Adjusting items:
Redundancy and restructuring costs (Note 5)
Intangible amortisation and impairment (Note 5)
(Profit)/loss on disposal and other adjusting items (Note
5)
Add back tax on adjusting items (Note 5)
Earnings for the purpose of adjusted EPS/ Adjusted
EPS
Effect of dilutive potential ordinary shares
Earnings for the purpose of adjusted diluted EPS/
Adjusted diluted EPS
Per
share
amount
2015
Pence
172.7
Earnings
2014
Per share
amount
2014
£m
Pence
(51.0)
(1.3)
(1.4)
171.4
-
26.4
-
(52.4)
-
(8.6)
-
171.4
26.4
(52.4)
(8.6)
Earnings
2015
Earnings
20141
Per share
amount
20141
£m
Per
share
amount
2015
Pence
£m
Pence
171.4
26.4
(52.4)
(8.6)
16.0
113.4
2.5
17.5
25.4
312.9
4.2
51.4
(9.4)
(13.2)
(1.5)
(2.0)
2.5
(38.7)
0.4
(6.4)
278.2
-
42.9
-
249.7
-
41.0
-
278.2
42.9
249.7
41.0
1
2014 adjusting items net of attributable taxation have been restated as described in Note 12. The 2014 adjusted basic and diluted earnings per share was 40.3p before the
effect of this restatement.
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27
11 BORROWINGS
Note
Current
Bank overdraft
Private placement loan note ($110.0m) – December 2015
Total current borrowings
Non-current
Bank borrowings – revolving credit facility - October 2020
Bank borrowing fees
Bank borrowings – non-current
Private placement loan note ($102.0m) – December 2017
Private placement loan note (€50.0m)
– December 2017
Private placement loan note (£40.0m)
– December 2017
Private placement loan note ($385.5m) – December 2020
Private placement loan note ($120.0m) – October 2022
Private placement loan note ($130.0m) – October 2025
Private placement fees
Private placement – non-current
Total non-current borrowings
13
13
2015
2014
£m
£m
2.0
−
2.0
3.3
70.4
73.7
359.1
(4.2)
354.9
68.8
36.8
40.0
260.2
81.0
87.8
(1.6)
573.0
927.9
455.2
(4.7)
450.5
65.5
39.0
40.0
247.3
(1.2)
390.6
841.1
929.9
914.8
There have been no breaches of covenants under the Group’s bank facilities and private placement loan notes
during the year. The bank and private placement borrowings are guaranteed by material subsidiaries of the
Group. The Group does not have any material amount of its property and equipment and other intangible assets
pledged as security over loans.
The Group has issued private placement loan notes amounting to USD 737.5m (2014: USD 597.5m), GBP 40.0m
(2014: GBP 40.0m) and EUR 50.0m (2014: EUR 50.0m). As at 31 December 2015, the note maturities ranged
between two and ten years (2014: one and six years), with an average duration of 5.5 years (2014: 4.3 years), at
a weighted average interest rate of 4.3% (2014: 4.3%).
The Group maintains the following lines of credit:

£900.0m (2014: £900.0m) revolving credit facility, of which £359.1m (2014: £452.2m) has been drawn down
at 31 December 2015. Interest is payable at the rate of LIBOR plus a margin based on the ratio of net debt to
EBITDA; and

£32.6m (2014: £39.1m) comprising a number of bilateral bank uncommitted facilities that can be drawn down
to meet short-term financing needs. These facilities consist of GBP £16.0m (2014: GBP 16.0m), USD 13.0m
(2014: USD 15.0m), EUR 8.0m (2014: EUR 8.0m), AUD 2.0m (2014: AUD 2.0m), and CAD 2.0m (2014: £nil).
Interest is payable at the local base rate plus a margin .

The Group has two bank guarantee facilities comprising of EUR 7.0m (2014: EUR 7.0m) and AUD $1.5m
(2014: AUD $1.5m).
The effective interest rate as at 31 December 2015 is 3.4% (2014: 3.0%).
The Group had the committed undrawn borrowing facilities at 31 December 2015 relating to the undrawn amount
of the revolving credit facility of £540.9m (2014: £448.8m).
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28
12 SHARE CAPITAL
On 30 May 2014 under a Scheme of Arrangement between Informa plc (‘Old Informa’), the former holding
company of the Group, and its shareholders, under Article 125 of the Companies (Jersey) Law 1991, and as
sanctioned by The Royal Court of Jersey, all the issued shares in Old Informa were cancelled and an equivalent
number of new shares in Old Informa were issued to Informa PLC (‘Company’) in consideration for the allotment
to shareholders of one ordinary share in the Company for each ordinary share in Old Informa that they held on the
record date, 29 May 2014.
The Company was incorporated under the Companies Act 2006 on 24 January 2014, as a private company
limited by shares with the name Informa Limited and re-registered on 14 May 2014 as a public company limited
by shares called Informa PLC. The Company became the parent company of the Informa Group and the previous
parent company, Old Informa, was renamed Informa Switzerland Limited.
The Company was incorporated with an issued share capital of £2 divided into 2 ordinary shares of 100 pence
each which were taken by the subscribers and were paid up in full in cash. On 13 May 2014 the two ordinary
shares of 100 pence each were converted into two Redeemable Deferred Shares of 100 pence each and an
additional 49,998 Redeemable Deferred Shares were issued to the subscribers. The 50,000 issued Redeemable
Deferred Shares of 100 pence each were redeemed on 11 June 2014.
On 13 May 2014 one ordinary share of 435 pence in the Company was issued and subsequently cancelled on 30
May 2014. Under the Scheme of Arrangement 603,941,249 ordinary shares of 435 pence each in the Company
were allotted to shareholders on 30 May 2014.
On 4 June 2014 the nominal value per share of the issued share capital of the Company was reduced from 435
pence per share to 0.1 pence each pursuant to sections 645 to 649 of the Companies Act 2006.
Share capital as at 31 December 2015 and 2014 amount to £0.6m. On 18 November the 2014, the Company also
issued 45,000,000 ordinary shares of 0.1 pence for consideration of £207.0m.
Issued and fully paid
648,941,249 ordinary shares of 0.1p each (2014: 648,941,249 of 0.1p each)
2015
2014
£m
£m
0.6
0.6
Number of
At 1 January and 31 December 2015
www.informa.com
shares
£m
648,941,249
0.6
29
13 NOTES TO THE CASH FLOW STATEMENT
Notes
Profit/(loss) before tax
Adjustments for:
Depreciation of property and equipment
Amortisation of other intangible assets
Share-based payment
Subsequent re-measurement of contingent consideration
(Profit)/Loss on disposal of businesses
Loss on disposal of other assets
Investment income
Finance costs
5
14
6
7
5
5
5
Impairment – Goodwill
Impairment – Other intangible assets
Impairment – Loan receivable
Share of results of joint ventures
Operating cash inflow before movements in working capital
Increase in inventories
(Increase)/decrease in receivables
Increase in payables
Movements in working capital
Cash generated by operations
2015
£m
2014
£m
219.7
(31.2)
6.1
112.3
2.6
(0.3)
(9.1)
0.1
(4.7)
30.6
13.9
0.1
371.3
(21.0)
41.7
20.7
392.0
6.1
106.0
1.7
(1.8)
2.8
(3.6)
29.2
193.4
11.1
14.5
0.4
328.6
(2.1)
(10.5)
1.5
(11.1)
317.5
Analysis of Net Debt
Cash at bank and in hand
Overdrafts
Cash and cash equivalents
Other loan receivable
Bank loans due in more than one year
Bank loan fees
Private placement loan notes due in less
than one year
Private placement loan notes due in more
than one year
Private placement fees
Total
At 1
January
2015
Non-cash
Movements
Cash
flow
Exchange
Difference
At 31
December
2015
£m
38.6
(3.3)
35.3
(455.2)
4.7
£m
(0.9)
£m
(1.4)
1.4
0.3
116.9
0.4
£m
(2.9)
(0.1)
(3.0)
(20.8)
-
£m
34.3
(2.0)
32.3
0.3
(359.1)
4.2
(70.4)
-
73.3
(2.9)
-
(391.8)
1.2
(876.2)
(0.3)
(1.2)
(166.5)
0.7
25.1
(16.3)
(43.0)
(574.6)
1.6
(895.3)
Included within the cash inflow of £25.1m (2014: outflow of £51.1m) is £928.9m (2014: £382.3m) facility loan
repayments, £812.0m (2014: £439.2m) of facility loan drawn downs, £73.3m (2014: £nil) of private placement
repayments and £166.5m (2014: £nil) of private placement loan notes.
Net debt consists of loans and other borrowings (both current and non-current), less cash and cash equivalents.
Net debt includes the costs incurred in raising debt and associated capitalised arrangement fees.
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30
14 BUSINESS COMBINATIONS
Entity acquired
Segment
Intangible assets
Trade and other
receivables
Cash and cash
equivalents
Trade and other
payables
Deferred income
Deferred tax asset
Deferred tax liabilities
Net assets/(liabilities)
acquired
Goodwill
WS Maney &
Son Limited
Academic
Publishing
£m
Ashgate
Publishing
Ltd. and Inc.
Academic
Publishing
£m
22.4
8.3
2.0
0.5
3.4
Other: 2015
Other: Prior
years1
£m
£m
£m
18.8
-
49.5
1.2
6.4
10.1
0.8
0.8
0.9
5.9
(1.5)
(3.1)
(4.5)
(5.2)
(1.7)
(2.1)
6.2
(6.7)
-
(6.7)
(5.2)
6.2
(12.9)
18.7
6.0
2.7
17.2
18.2
10.3
7.3
1.9
46.9
35.4
24.7
19.9
28.5
9.2
82.3
Total
Total consideration
Less: deferred
consideration
Less: contingent
consideration
Less: net cash acquired
-
-
(1.4)
(0.1)
(1.5)
(3.4)
(0.8)
(4.2)
(0.8)
(1.9)
(0.9)
(6.1)
(5.9)
Total cash outflow
21.3
19.1
22.1
6.3
68.8
¹ Other prior years excludes the restatement of goodwill and intangibles arising from the finalisation of the valuation of the Hanley Wood acquisition as restatement has been
made to opening balances.
Business combinations made in 2015
WS Maney & Son Limited
On 19 June 2015 the Group acquired 100% shareholding in WS Maney & Son. WS Maney & Son Limited is a
journal publisher specialising in Materials Science and Engineering, the Humanities and Social Sciences and
Health Sciences. The company forms part of the Academic Publishing segment.
Total consideration was £24.7m which was paid in full in cash in 2015. The net cash outflow of £21.3m reflects
total cash paid of £24.7m adjusted for cash acquired with the business of £3.4m. The disclosure above provides
the net assets/(liabilities) with related fair value adjustments for the acquisition.
The business contributed £0.4m loss after tax and £4.1m to revenue of the Group for the period between the date
of acquisition and 31 December 2015. If the acquisition had completed on the first day of the financial year, it
would have contributed £0.5m loss after tax and £8.2m to revenue of the Group.
Goodwill of £6.0m arising from the acquisition reflects growth opportunities and buyer-specific synergies. None of
the goodwill recognised is expected to be deductible for income tax purposes.
Ashgate Publishing Limited
On 16 July 2015 the Group acquired 100% shareholding in Ashgate Publishing Limited. Ashgate Publishing
Limited is a book publisher with around 14,000 book titles and publishing approximately 800 new titles annually,
primarily in HSS (Humanities and Social Sciences) disciplines for the academic and professional markets. The
company forms part of the Academic Publishing segment.
Total consideration was £19.9m of which £19.1m was paid in cash in 2015 after cash acquired. The disclosure
above provides the net assets/(liabilities) with the related fair value adjustments for the acquisition. The business
contributed £2.3m loss after tax and £4.7m to revenue of the Group for the period between the date of acquisition
and 31 December 2015. If the acquisition had completed on the first day of the financial year, it would have
contributed a £2.1m loss after tax and £10.2m to revenue of the Group.
Goodwill of £17.2m arising from the acquisition reflects growth opportunities and buyer-specific synergies. None
of the goodwill recognised is expected to be deductible for income tax purposes.
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31
15 DISPOSAL OF SUBSIDIARIES AND OPERATIONS
During the year, the Group generated the following net profit/(loss) on disposal of subsidiaries and operations:
Segment
Consumer Information business
Conference businesses in Sweden, Denmark and
Netherlands
Corporate Training businesses
Other operations
Profit/(loss) for the year from disposal of subsidiaries and
operations
Business Intelligence
Knowledge and
Networking
2015
£m
7.4
1.4
2014
£m
-
0.3
(1.5)
(1.3)
9.1
(2.8)
Disposals made in 2015
On 27 July 2015 the Group announced, and on 1 September 2015 the Group completed the disposal of its
consumer information business for a total consideration of £25.0m, resulting in a profit on disposal of £7.4m. The
consideration consisted of £22.5m of cash received at completion and £2.5m of deferred proceeds. The cash
inflow in 2015 relating to this disposal, net of cash disposed, was £18.1m and disposal costs paid amounted to
£1.7m. The total net inflow of cash amounted to £16.4m. The sale comprised its Datamonitor Financial,
Datamonitor Consumer, MarketLine and Verdict businesses.
On 22 September 2015 the Group completed the disposal of its conference businesses based in Sweden and
Denmark. On 10 November 2015 the Group completed the disposal of its conference business based in the
Netherlands. The profit on disposal of these businesses was £1.4m and the total amount payable by the Group
amounted to £0.6m reflecting a working capital adjustment. Cash disposed amounted to £2.8m and disposal
costs paid amounted to £0.2m. The net cash outflow was £3.6m.
Other operation disposals completed in the year resulted in a profit of £0.3m and included a £0.5m profit from the
disposal of the assets of the Insurance IQ business in the USA that completed on the 1 June 2015.
Disposals made in 2014
Following the disposal of the Corporate Training businesses on 30 September 2013, final adjustments (including
related costs) of £1.5m were recognised in the loss on disposal in the year ended 31 December 2014. This was
included as an adjusting item in the Consolidated Income Statement.
In 2014 the Group disposed of its Fashion Exposed event in Australia, resulting in a loss on disposal of £1.3m.
This was included as an adjusting item in the Consolidated Income Statement.
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32